- Sponsorships play a pivotal role in elevating companies’ visibility, credibility, and trust with consumers
- Mark Harrison, “When you look at research, often brands that have, meaning connection with consumers…those companies have, in general, higher stock prices than those without sponsorship.”
- Today’s sponsorship is driven by ‘impact over impressions’
- NBC’s rumoured US$9M investment in Snoop Dogg as a special correspondent for the Paris Olympics is estimated to have brought in US$1.4B in ad revenue
The power of sponsorships: A deep-dive into brand impact, strategy, and stock price
We sit down with Mark Harrison, founder of the MH3 Collective which includes several companies covering sponsorship, marketing, humanity, entrepreneurship, and talent & education. His expertise in creating sponsor value and experiences for brands extends through several companies including Mondelez International, Esso, Maple Leaf and the NFL.
See the above video for an in-depth discussion highlights how sponsorships, particularly those associated with major events like the Olympics and initiatives like the Paralympic Games, contribute to a brand’s long-term value and stock performance.
The core of brand value: Trust and impact
Sponsorships play a pivotal role in elevating companies’ visibility, credibility, and trust with consumers. But as the landscape shifts, so does the way brands approach sponsorships, moving from simply seeking impressions to focusing on creating lasting impact.
“When you look at research, often brands that have, meaning connection with consumers, they’re trusted. They’re innovative. Those companies have, in general, higher stock prices than those without sponsorship.”
Mark Harrison
He points out that when BMO sponsors the Olympics or buys new branches in California, they sponsor Angel City FC and put their name on the stadium because that gives a sense to permanence, long-term credibility and public perception. Harrison adds that, “And so sponsorship plays a role in brand value which plays a role in stock price.”
The Bank of Montreal (BMO) became the naming rights sponsor for the Los Angeles Football Club’s (LAFC) stadium on January 19th, 2023. Previously, the stadium was known as Banc of California Stadium.
Bank of Montreal (TSX:BMO) shares have gone up nearly 18 per cent in one year and in the last 5 years shares have increased by 30 per cent.
Moving beyond impressions: Sponsorship for real impact
Historically, sponsorships were about gaining visibility — associating a brand with a favourite event or team to build recognition. But today, companies now want their sponsorships to enhance the consumer experience, contribute to societal betterment as well as increase brand visibility.
Harrison emphasizes that, “Today’s sponsorship really is driven much more through what we call impact – impact over impressions.” He points out that Coca-Cola is a good example of a brand of having impact by discovering new musical artists with Coke Studio and diving into cultural sponsorships as well as sponsoring the Olympic torch relay.
Sponsorship can also boost a company’s bottom line.
In Paris, for the Olympics, Airbnb sponsorship was not just about boosting brand visibility, it was about securing their operations in Paris and aligning with the government to maintain a healthy business environment during the Games. For some companies, sponsorship acts as a safeguard for their market position, demonstrating the broader strategic role these partnerships can play.
Harrison comments that, “You might be carrying $1 billion check over here, but you’re saving a $10 billion business over there, and that is that is all about government relations.”
Airbnb Inc. (NASDAQ:ABNB) shares were last trading at US$133.26.
Sponsorships as a long-term investment
When it comes to budget allocation, sponsorships typically take up about 15-20% of a company’s marketing budget in Canada and the US. However, the ROI (return on investment) for sponsorships is not always immediately obvious.
While traditional advertising might generate quick results, the impact of sponsorship is a longer-term play. Harrison adds, “If you’re really going to do sponsorship properly, you gotta sign up for a 3 to 5 year horizon.”
Brands must remain consistent to build genuine connections over time.
Nike Inc. (NYSE:NKE) decision to remove its logo from NFL and NBA uniforms was a clear example of a misstep in a sponsorship strategy. The result was a drop in brand health and credibility scores, proving that long-term partnerships and visibility in sponsorships are essential for building and maintaining brand equity.
On that note Harrison adds, “You need to tweak the formula. Right. Like it isn’t. You know, it’s like it’s like making a recipe at home. You don’t always get in it right the first few times.”
SuperBowl
Super Bowl sponsorships and ads can exceed $500 million annually, making it one of the largest marketing investments for companies seeking high visibility.
- Commercial spots: A 30-second TV ad during the Super Bowl in 2024 costs around $7 million, driven by the event’s massive viewership of over 100 million people.
- Official sponsorships: Becoming an official partner of the Super Bowl can cost between $10 million to $50 million, depending on exclusivity and visibility. Major brands like Pepsi and Coca-Cola are long-term sponsors.
- Activation costs: Companies also spend on activation efforts, such as in-stadium events and digital campaigns, which can add millions to the total cost.
- Halftime show and celebrity endorsements: Sponsoring the halftime show or partnering with celebrities also incurs significant expenses to boost brand exposure.
The growing interest in the Paralympic Games
As companies look to diversify sponsorships, events like the Paralympics present an opportunity to tap into a unique market. There is a significant room for expansion, especially as society increasingly acknowledges the value of these athletes, who overcome tremendous challenges to compete.
Brands that invest in the Paralympic Games not only support these athletes but can also unlock significant long-term returns as the world’s view of disability and adapted sports continues to evolve.
Harrison adds that the Paralympics and the upcoming 2025 Invictus Games in Vancouver have a strong business opportunity.
While sponsorships are increasingly measured through their impact, quantifying the ROI is still a complex process. Brands today are more disciplined in their approach to sponsorships, utilizing tools like brand health tracking studies and social media analytics to determine the effectiveness of their investments.
Furthermore, social media and earned media have become vital components of sponsorship success. Brands are increasingly leveraging influencers and ambassadors to generate buzz, such as when NBC’s partnership with Snoop Dogg for the Paris Olympics. Snoop was hired as a special correspondent and happiness ambassador.
NBC’s rumoured US$9M investment is estimated to have generated US$1.4B in ad revenue.
Sponsorships are no longer just about placing a logo on an event; they’re about creating lasting, impactful connections with consumers. Brands that focus on building trust, driving social good, and engaging in long-term partnerships are seeing substantial returns on their investments. From the Olympics to the Paralympics, and from sports teams to music festivals, the future of sponsorship lies in creating a meaningful impact that transcends mere visibility.
Part of Harrison’s MH3 Collective, SponsorshipX is launching the ROI Forum, an event focused on sponsorship data and measurement, held in Vancouver March 2025.
About Mark Harrison
Entrepreneur. Author. Speaker. Coach. Human.
Mark Harrison is the founder of the MH3 Collective, a group of ventures whose purpose is to connect people & ideas to create social impact. The Collective includes Humanity, a creative agency for the Human Age; Sidekick, a team of purpose-driven strategy consultants; T1, a sponsorship agency that works with impactful brands; and SponsorshipX, a global community of marketing practitioners. In addition, he co-founded the Black Talent Initiative to support the Black community in professional workplaces and Park Street Education, a charity to remove all barriers to children’s education.
His community involvement also includes being Board Chair of Big Brothers Big Sisters of Toronto, a Board Member of the CAMH Foundation, the Canadian Academy of Recording Arts and Sciences/The JUNO Awards, Ontario University Athletics, and an advisor to several ventures, including the Crankworx World Tour, and NFL Canada. In addition, Mark sits on the Board of Playmaker Capital, a leading digital sports media company.
Mark is also CBC Metro Morning’s business columnist, where you can hear his regular takes on corporate and societal matters.
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